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If you’re looking to make your entrepreneurial dreams come true in the state of Montana, forming a Limited Liability Company (LLC) might just be the best first move. It’s a great way to gain credibility and protect your assets.
But it’s not easy. Setting up an LLC involves multiple steps that require understanding of Montana’s business laws, from filing the necessary paperwork to ongoing reporting requirements. And you don’t want to get these wrong. Non-compliance can lead to daunting legal and financial repercussions that could see your business dreams evaporating before your eyes.
The LLC formation process requires meticulous attention to detail, and that’s why we’ve created this easy-to-follow guide – but you may want to try a professional service instead. Tailor Brands is the best choice if you’re looking for creative services alongside LLC filing, with options for any type of company.
Otherwise, if you’re ready to get started, proceed to the first step below!
Before you begin, be sure to take note of the following important points:
LLC registered names must be completely unique, but you can operate under an alternative “Doing Business As” name, which requires filing an additional form.
All information provided is part of the public record, so you may want to consider using a third-party Registered Agent service.
LLC formation articles can only be amended or corrected by submitting a $15 fee and the correct form to the Secretary of State.
Select a name that reflects your business and complies with Montana’s naming rules. The name must be unique, not be too similar to existing businesses, and include an LLC designator like “Limited Liability Company,” “LLC,” or “L.L.C.” Perform a name search on Montana’s Secretary of State website to ensure your chosen name is available.
You should also consider searching for and registering a domain name for your business website, which is included with an LLC formation plan from Tailor Brands.
2. Appoint a Registered Agent
A Registered Agent is a person or entity responsible for receiving legal documents (e.g., lawsuits, summons) and official government correspondence on behalf of your LLC. The Registered Agent must have a physical address (not a P.O. box) in the state of Montana, and must be available during regular business hours.
You can choose a member of the LLC if it is a partnership, a friend, a professional Registered Agent service like ZenBusiness, or even yourself.
3. File Articles of Organization
This foundational document needs to be filed with Montana’sSecretary of State office. This costs $35, and must include the following information, at minimum:
An Operating Agreement is optional for LLCs in Montana. This is a legal document that outlines the ownership, management structure, and operating procedures of your LLC. It typically includes information on:
Members’ ownership percentages
Voting rights and responsibilities
Profit and loss allocation
Management structure (member-managed or manager-managed)
Procedures for adding or removing members
Creating an Operating Agreement helps avoid disputes among members and provides clarity on how the business should be run. ZenBusiness’ Pro package includes an Operating Agreement draft.
5. Obtain an Employer Identification Number (EIN)
An EIN is a unique nine-digit number assigned by the IRS to your LLC for tax purposes. It’s required for filing business taxes, hiring employees, and opening a business bank account, which you should also do to keep your personal and business finances separate.
However, if your LLC is a single-member LLC with no employees and is classified as a disregarded entity for tax purposes, you may be able to use your Social Security number (SSN) instead of an EIN for federal tax filing. But even in this case, it is generally recommended to obtain an EIN to separate business activities from personal ones and maintain the limited liability protection.
The Pro package from LegalZoom includes an EIN application.
6. Register for state and local taxes
Depending on your business activities and location in the state of Montana, you may need to register for various state and local taxes, such as:
Your LLC may require specific licenses or permits to operate legally in Montana, depending on the industry and location. Examples include:
Professional or occupational licenses
Health and safety permits
Zoning and land use permits
Sales tax licenses
Environmental permits
Visit the Montana Secretary of State and your local government websites for more information on required licenses and permits, or seek advice from ZenBusiness, which can come up with a plan to cover your exact requirements.
8. Maintain ongoing compliance
LLCs in Montana are subject to ongoing state requirements to remain in good standing. These requirements include:
Filing an Annual Report. The Montana Secretary of State’s Business Services requires an annual report to be filed by 15 April. The fee is $20. The report can only be filed online.
Maintaining a Registered Agent. Ensure that your Registered Agent remains available and maintains a valid physical address in the state where your LLC is formed. LegalZoom can provide a Registered Agent service for a low annual fee so that you don’t have to worry about it.
Complying with state and federal tax obligations. File your LLC’s tax returns and pay any taxes owed on time. This may include federal income tax, state income tax, sales and use tax, payroll tax, and any other taxes that may be relevant to your particular business.
Renewing licenses and permits. Keep all required licenses and permits up to date by renewing them as needed. Failure to maintain proper licenses and permits can lead to fines or legal trouble.
By staying informed and diligently meeting these ongoing requirements, you can keep your LLC in good standing and protect your limited liability status. The easiest way to do this is to employ one of the selected business service providers we’ve researched and reviewed below.
These Are the Top 3 LLC Formation Services for Montana
There are a lot of LLC formation services out there. To come up with the top 3 in Montana, we looked for the following features:
Tailor Brands gets you started quickly and easilyThe major benefit of Tailor Brands is its range of visual design and marketing tools and add-on services. You get a whole lot more than basic LLC formation, including graphic design, brand growth materials, social media tools, and website development. (In fact, if you don’t need all that, you may want to look at the other two companies on this list.)
One nice feature of Tailor Brands is its free “plan” generator. Give a bit of info about you and your business, and Tailor Brands will build a checklist to get you from where you are now to fully launched and online. Of course, you’ll be encouraged to buy its plans and services along the way, but if you’re just moving from the idea phase to taking action in your business-building venture, it’s a good basic guideline to follow.
Features
Free logo creation tool available with all plans, advanced features available with the top-tier Elite plan
Partnership with Zazzle for printed merchandise
Social marketing tools to help build brand awareness
ZenBusiness can offer you LLC formation services starting at $0 (plus state fees, of course)
Can an LLC formation service really fit the needs of every business? ZenBusiness works for side hustles and big, ambitious enterprises alike. Its highly customizable plans and product bundles will work for any size of business.
ZenBusiness offers a free plan, and then two tiers of paid plans, Pro and Premium. The free plan includes a filing time of 2-3 weeks, but you can buy an add-on to speed this up. For a faster turnaround, both Pro and Premium plans offer expedited filing times of 1-2 days. More importantly, all plans include a 100% Accuracy Guarantee, so you can rest assured that they won’t get the details wrong.
The Pro and Premium plans come with another bonus, ZenBusiness Money Pro – a financial management tool that helps you track expenses, income, invoicing, mileage, taxes, and more. A free version that’s a bit more basic, called Money Essential, is available on the free Starter package. It’s good if all you need or want is automatic expense tracking. If you’re not sure what you might need, you can sign up for a free 30-day trial of Money Pro and compare.
Features
Free 30-minute tax consultations with every plan through partner 1-800Accountant
Access your account dashboard through an Android or iOS app in addition to desktop
Proprietary ZenBusiness website builder, domain name, and email available with the Premium plan
Easily customized plans so you get exactly what you need
LegalZoom offers LLC formation with extra legal support for complicated filings
With a proven track record and years of experience, LegalZoom is ideal if you’re starting a business that is higher risk, or if you just need a bit more support during the formation process. One of LegalZoom’s standout features is its extensive library of legal documents and templates, with legal consultations available to help with any complex or specific situations.
While these services aren’t available with all plans, they can be worth the price if you’re struggling with any tricky legal requirements. You can also try the Basic plan – LegalZoom’s free option. It’s not as robust, but still offers a name check service, Articles of Organization, and an audit of your information before filing.
And if you have any issues – no matter which plan you choose – LegalZoom’s knowledgeable support team is dedicated to helping entrepreneurs make informed decisions at every step in the process. Offering support 7 days a week, LegalZoom ensures you’ll get a response quickly.
Features
30-day free trial of legal consultations, available on the Premium Plan
Free customizable website available through a partnership with Wix, included with all plans
Digital welcome packet with step-by-step guide for basic LLC formation
Copyright registration, included with the Premium Plan
Free plan (plus state fees)?
✔
Expedited option?
✔
Fastest available LLC filing time
2-3 days
Customer support
Email, live chat, and phone (available on Pro and Premium Plans)
Starting an LLC can be a dream come true – but only after you’ve completed all the paperwork. Our three featured company formation services take all the hassle and headache out of getting your LLC up and running.
If brand building is your main priority, consider Tailor Brands. This provider is known for its branding and marketing services and tools. From your logo to your website, it has you covered.
No matter how big or small your LLC venture might be, ZenBusiness has a plan that will work for you. Its plans pack a lot of value, including its free one.
Or, if you’re a newbie just starting out and need extra legal guidance along the way, go with LegalZoom. It offers legal consultations, document templates, and even copywriting support, in addition to its basic LLC formation services.
Here are our top 3 picks at a glance for Montana:
Standout feature
Bonus Feature #1
Bonus Feature #2
Starting price
Tailor Brands
Branding and marketing tools
Business “launch plan” generator
State and local permit research and filing service
Suzanne has been a freelance writer and editor for 31 years, and has been writing online content since 2008. She holds professional certifications in editing and SEO strategy. She’s often been in the same desk chair as our Website Planet readers, needing to know what’s best and what’s best avoided. When she’s not testing and reviewing vendors, Suz is a professional artist as well as a volunteer therapy musician, playing the Celtic lap harp. She is a nature-lover who is often found walking the hiking trails near her home. She also enjoys time with her family, her grandchildren, and two cats.
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